JPR Limited manufactures three products by using a single machine which has 2,40,000 bottleneck hours per month. The details with regard to the three products are as under: Products P1 P2 P3 Selling price per unit (7) Direct Material cost ( ) 170 140 180 80 90 120 Direct Labour cost () 30 25 35 Other Expenses (?) Maximum Demand (units) Time required per unit (hours) 10 10 5 20,000 15,000 25,000 6 4 3 Required Based on the concept of throughput accounting, calculate the optimum number of units to

Principles of Accounting Volume 2
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Chapter6: Activity-based, Variable, And Absorption Costing
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Optimum no.of units to be produced

JPR Limited manufactures three products by using a single machine which has 2,40,000
bottleneck hours per month. The details with regard to the three products are as under:
Products
P1
P2
P3
Selling price per unit ()
Direct Material cost (?)
170
140
180
80
90
120
Direct Labour cost (?)
Other Expenses (?)
Maximum Demand (units)
30
25
35
10
10
5
20,000
15,000
25,000
Time required per unit (hours)
6
4
3
Required
Based on the concept of throughput accounting, calculate the optimum number of units to
Transcribed Image Text:JPR Limited manufactures three products by using a single machine which has 2,40,000 bottleneck hours per month. The details with regard to the three products are as under: Products P1 P2 P3 Selling price per unit () Direct Material cost (?) 170 140 180 80 90 120 Direct Labour cost (?) Other Expenses (?) Maximum Demand (units) 30 25 35 10 10 5 20,000 15,000 25,000 Time required per unit (hours) 6 4 3 Required Based on the concept of throughput accounting, calculate the optimum number of units to
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